South Korea-based POSCO Holdings (POSCO), will work alongside industry leading partners to advance what could become a key hub of hydrogen supply in Asia, the Sarawak H2biscus green hydrogen project.

On 7th September the company signed a Memorandum of Understanding (MoU) with Samsung Engineering, Lotte Chemical, Malaysian Sarawak Economic Development Corporation Energy, and Malaysian Sarawak Energy for Green Hydrogen Business to supply hydroelectric-based renewable power for the project. 

The agreement involves the partners working together to find a stable power supply (of minimum 900 megawatts (MW)) to produce 200,000 tonnes of green hydrogen from 2027.

7,000 tonnes of the green gas will be used in Malaysia, while the remainder will be transported to Korea using ammonia as a carrier. 

Commenting on the agreement, Byeong-og Yoo, Senior Executive Vice President, POSCO Holdings, said, “If the discussion on the power supply is successfully progressed, the H2biscus project will be the hub of hydrogen supply in Asia.” 

The deal comes after an MoU signed in January between POSCO, Samsung, Lotte, and SEDC Energy to build a partnership to accelerate development of the Sarawak project. 

By working to promote green hydrogen in Asia, Australia, and the Middle East, POSCO Group is aiming to become South Korea’s largest hydrogen player by developing a system to produce 7 million tonnes of hydrogen by 2050.